Final answer:
SD indicators should not be based solely on economics or dollar values; multiple dimensions including environmental, social, and political factors need to be considered for a holistic approach to sustainable development.
Step-by-step explanation:
The question of whether all Sustainable Development (SD) indicators should be based solely on economics or dollar values does not have a one-size-fits-all answer. While economic indicators are essential tools for economists to assess a country's economic growth and development, they are not the only measures that matter.
In the pursuit of global sustainability and progress, a variety of factors beyond the economic realm—social, environmental, and political—are necessary for a holistic understanding of development.
Economists use index numbers to measure the price level because they provide a more accurate representation of the value of goods and services over time, accounting for factors like inflation, rather than just the dollar value. The fungibility of dollars, or the principle that each dollar holds the same value to an individual in any situation, is why this common measure is used.
However, it is important to consider that the value of the earth and human well-being cannot be comprehensively measured in economic terms alone. Mental accounting, for instance, shows us that people often value dollars differently based on the context, which indicates that economic measures cannot capture all aspects of value.